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News from 2022-12-13 / DEG
DEG supports renewable energy generation in Uzbekistan
• Financing of two 500 MW greenfield wind power plants in Uzbekistan
• Co-financing by EBRD and Proparco
Due to its geographical and climatic conditions, Uzbekistan has a high potential for solar and wind energy. In order to cover the increasing energy demand and to reduce the dependence on fossil energies, the Uzbek government targets the development of 12 GW of solar and wind capacities with a view to generate 25% of its energy from renewable sources by 2030.
DEG supports the development of green infrastructure in Uzbekistan and is consequently committed to sustainable development in line with the Sustainable Development Goals. Therefore, DEG co-finances the construction and operation of the Bash Wind Power Plant and the Dzhankeldy Wind Power Plant with a total installed capacity of 1GW in the Bukhara region, both owned by ACWA Power. ACWA is an international developer, investor, co-owner and operator of a portfolio of power generation and desalinated water production plants.
For the two wind projects, DEG provides two long-term loans totaling USD 60 million alongside EBRD, Proparco, Standard Chartered Bank and other commercial banks.
“We are pleased to be partnering with our longstanding client ACWA Power and our friends from EBRD and Proparco in this landmark transaction improving the supply of renewable energy in Uzbekistan. As such, DEG plays an active role in facilitating private sector investment into renewable energy generation and we are looking forward to continue to support the development of renewable energy projects in the country,” says Ludger Roecken, DEG’s Department Head of Infrastructure & Energy Asia/EMECA.
Once operational, the new wind power plants will generate more than 3,000 GWh of green electricity annually and will help reduce annual CO2 emissions by 1,800,000 tons.
Since 2022, DEG has focused its work even more keenly on investments in the areas of impact and climate. That includes a reduction in carbon emissions in line with the Paris Agreement, in order to make DEG’s portfolio climate-neutral by 2040. DEG provides tailored financing solutions to private infrastructure companies that support sustainable transformation and thus contribute to the UN’s Sustainable Development Goals (SDGs) in the form of long-term loans, equity investments and mezzanine finance.
